Semiconductor and MEMS packages have a unique engineering structure, in which various polymeric and inorganic materials are densely packed in millimeter-to micrometer-scale configurations. While inorganic materials (silicon, copper, aluminum, etc.) are impervious to moisture, polymers (molding compound, die attach, underfill, solder resist, etc.) absorb moisture and expand because of the absorbed moisture. This mismatch in hygroscopic swelling between the two material groups incurs deformations of semiconductor packages. The consequences of these deformations, as far as the induced stresses are concerned, are similar to the effect of the deformations induced by the mismatch in the thermal expansion.The analysis of moisture-induced deformations is essential to the assessment of the mechanical/functional integrity and performance of semiconductor and MEMS devices subjected to temperature and humidity excursions during their storage, manufacturing, and service life. It involves a moisture diffusion analysis and a subsequent stress analysis, where the combined effect of moisture and temperature distribution on the deformation is calculated [1]. Although moisture diffusion in polymers had been a classical research topic due to the impact of moisture itself on the state of polymers [2], the need to model moisture-related phenomena in complex structures arose quite recently, i.e., just a decade ago, as moisture-related issues such as pop-corning became important in semiconductor packages [3].This chapter describes recent progress in modeling of moisture diffusion and moisture-induced stresses in semiconductor and MEMS packages. It addresses both basic and practical aspects including (1) the theoretical background of moisture diffusion and hygroscopic swelling, (2) modeling schemes to solve moisture diffusion and combined hygro-thermo-mechanical stresses, and (3) validation of modeling schemes. Much of the chapter is excerpted from [1, 4] and [5] with the kind per-